Flashcards
NEP - Contract Admin
Cards in this deck (21)
- 1describe relationship between the defects liability period and final certificatePrior to the completion of the defects liability period, the architect will undertake a 'final certificate inspection' and any unsatisfactory work can be listed to the contractor for rectification.
Once the defects are completed, the architect will issue the 'final certificate' which formally completes the contract and all final monetary adjustments will be scheduled in this certificate including the returns of any cash retention. - 2final certificatethe successful completion of the defects liability period, shows the amount of the final payment due to the contractor and certifies that the works have been completed in accordance with the contract
- 3practical completionrefers to the stage of a construction contract when the works become reasonably fit for use and occupation
- 4practical completion (7 things happen)1 - commissioning tests for plant and equipment are completed successfully
2 - approvals for occupation have been obtained from authorities
3 - defects liability period begins
4 - 50% of the security held is released back to the contractor
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7 - - 5floatthe measure of free time in a program between non-critical activities not affecting the finishing time for a project.
float is the additional time available befor e a non-critical activity becomes a critical activity - 6who has the benefit of the float?both parties benefit
EOT should only be given to critical path items
Owner has benefit of float in a CP item until it becomes zero
Contractor has float in non-CP items which are subject to EOT that would be granted for delays to critical activities - 7ex. of contractual floatprovisional delays like weather
- 8security of paymentsUnder legislation, an owner in receipt of a claim for payment from a contractor has a set time limit in which they must either pay the amount claimed, reject the claim entirely, or dispute the amount claimed and pay the portion of the claim which is not disputed. If the owner does not respond, the claim must be paid in full
- 9progress paymenta payment under a contract or client-architect agreement for work partly completed. a progress payment is made by the principal/client to the contractor on the presentation by the contractor of a progress certificate prepared by the architect
- 10set-offthe process whereby a contractor's progress claim is reduced by the contract administrator by an amount owed by the contractor to the owner
- 11who provides the securitythe contractor!
it is an assurance that the contractor will meet its obligations under the contract - 12types of securitycash retention or bank guarantee
- 13what is a cash retentionan amount retained progressively from each payment until a nominated limit is reached
- 14unconditional bank guaranteecash equivalent provided by a financial institution
usually (2) are provided for a project, each valued at half the total security required - 15how much security is suggested by ABIC-SW5% of contract price and remains 5% of original contract price if it is varied during construction
- 16what is a prime cost iteman allowance in the contract for the supply of necessary items not yet finally selected
ex. door furniture - 17what is a provisional suman allowance in the contract for the cost of foreseeable necessary work, including the supply of materials not fully described or detailed at the time that the contract commenced
ex. service connections - 18contingency suma sum of money included in a construction contract sum for expenditure if necessary on matters unforeseen at the time of calculating the contract sum
- 19what are liquidated damagesa pre-estimate of the 'loss' a client is likely to suffer if the practical completion is delayed beyond the contract date of PC.
- 20when are liquidated damages payableif the works have not reached PC, the architect must notify the contractor and owner that the owner is entitled to liquidated damages
- 21how are liquidated damages deductedthey are deducted from the next and subsequent progress certificates
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- NEP Architecture Flashcards on NEP - Contract Admin, created by kristin koslowski on 10/08/2018.
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- kristin koslowski
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